BNP Paribas Securities Services and AXA Investment Managers (AXA IM) have extended an existing partnership to include settlement agency services in Latin America.
The deal was kickstarted by BNP Paribas gaining membership to the National Securities Clearing Corporation (NSCC) regional clearing platform.
The deal represents a “significant move” by AXA IM to capitalise on the trend for fund managers distributing into the Latin American region, said a statement from BNP Paribas.
“Investors and, crucially, local regulators are becoming ever more open to opportunities to connect local investors with inbound international funds. Connecting to NSCC through BNP Paribas enables AXA IM to make its fund ranges accessible to the largest brokers active in Latin America. This step is part of AXA IM’s ongoing efforts to expand and strengthen its geographical footprint.”
Joseph Pinto, chief operating officer, at AXA IM, said: 'Latin America is a key target market for us as the doors into the region are opening. This deal sees the extension to Latin America of AXA IM’s ‘offer to meet needs everywhere’—a highly successful client service platform already in place in Europe and Asia. We want to make it as easy as possible for clients to invest with us and the ONE platform was designed to provide simple and efficient access for investors to AXA IM’s fund ranges.”
Jean Devambez, head of asset and fund solutions for BNP Paribas Securities Services, said: “European asset managers have their sights fixed on Latin America, but there are several barriers which are causing them to hesitate. We believe that a fuller understanding of the region will allow many more managers to take advantage of the opportunities there.”
BNP Paribas, in conjunction with SAGALINK consulting, recently produced a white paper on the five most important target destinations for fund distribution in Latin America. The white paper is designed to aid fund managers navigate the nuanced local regulatory environments and understand investor behaviours.
Devambez added that Latin America has become a hot spot for fund distribution, attracting a growing number of foreign funds and asset managers attempting to capture rapidly growing local interest in foreign securities.
